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Marriage and Wages: A Test of the Specialization Hypothesis

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  • ELENA BARDASI
  • MARK TAYLOR

Abstract

We investigate the relationship between marriage and wages among men in Britain using panel data. Our econometric specifications allow for observed and unobserved heterogeneity and explicitly test the role of intra-household specialization in explaining the observed relationship. Our estimates provide evidence for the existence of large selection effects into marriage based on observable and unobservable characteristics that are positively correlated with wages. After accounting for individual-specific time-invariant effects and a wide range of individual, household, job and employer related characteristics, we find a statistically significant premium that can be attributed to productivity differences largely resulting from intra-household specialization. Copyright (c) The London School of Economics and Political Science 2007.

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  • Elena Bardasi & Mark Taylor, 2008. "Marriage and Wages: A Test of the Specialization Hypothesis," Economica, London School of Economics and Political Science, vol. 75(299), pages 569-591, August.
  • Handle: RePEc:bla:econom:v:75:y:2008:i:299:p:569-591
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    Cited by:

    1. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers of BETA 2015-30, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Rachel Gordon & Carolyn Heinrich, 2009. "The potential of a couples approach to employment assistance: results of a nonexperimental evaluation," Review of Economics of the Household, Springer, vol. 7(2), pages 133-158, June.
    3. Juliet Elu & Gregory Price, 2013. "Ethnicity as a Barrier to Childhood and Adolescent Health Capital in Tanzania: Evidence from the Wage-Height Relationship," African Development Review, African Development Bank, vol. 25(1), pages 1-13.
    4. Antecol, Heather & Steinberger, Michael D., 2009. "Female Labor Supply Differences by Sexual Orientation: A Semi-Parametric Decomposition Approach," IZA Discussion Papers 4029, Institute for the Study of Labor (IZA).
    5. Alison Booth & Jeff Frank, 2008. "Marriage, partnership and sexual orientation: a study of British university academics and administrators," Review of Economics of the Household, Springer, vol. 6(4), pages 409-422, December.
    6. Roberto Bonilla & Francis Z. Kiraly & John Wildman, 2017. "Marriage Premium and Class," CESifo Working Paper Series 6550, CESifo Group Munich.
    7. Zaharieva, Anna, 2013. "Social welfare and wage inequality in search equilibrium with personal contacts," Labour Economics, Elsevier, vol. 23(C), pages 107-121.
    8. Sergey Roshchin & Victor Rudakov, 2015. "Do Starting Salaries for Graduates Measure the Quality of Education? A Review of Studies by Russian and Foreign Authors," Educational Studies, Higher School of Economics, issue 1, pages 137-181.
    9. Simonetta Longhi & Mark Taylor, 2013. "Occupational Change and Mobility Among Employed and Unemployed Job Seekers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 71-100, February.
    10. Longhi, Simonetta & Taylor, Mark P., 2011. "Explaining differences in job search outcomes between employed and unemployed job seekers," ISER Working Paper Series 2011-17, Institute for Social and Economic Research.
    11. Åström, Johanna, 2009. "The Effects of Assortative Mating on Earnings: Human Capital Spillover or Specialization?," HUI Working Papers 34, HUI Research.
    12. Rob Simmons & David Berri, 2009. "Gains from Specialization and Free Agency: The Story from the Gridiron," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 81-98, February.
    13. Arif Mamun, 2012. "Cohabitation Premium in Men’s Earnings: Testing the Joint Human Capital Hypothesis," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 53-68, March.
    14. Dacuycuy, Connie B., 2016. "Wages, Housework, and Attitudes in the Philippines," Discussion Papers DP 2016-36, Philippine Institute for Development Studies.
    15. Aistov, Andrey, 2013. "Marital wage gap," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 99-114.
    16. Niklas Jakobsson & Andreas Kotsadam, 2016. "Does marriage affect men’s labor market outcomes? A European perspective," Review of Economics of the Household, Springer, vol. 14(2), pages 373-389, June.

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